Transaction values CCR Re at close to €1 billion; will transfer 75% ownership to mutual consortium
French state-owned insurance company CCR has announced it has entered into exclusive negotiations with a consortium made up of SMABTP and MACSF with a view to ceding control of CCR Re and boosting its capital by €200m.
Under the proposed transaction, CCR would initially dispose of approximately 70% of CCR Re’s capital. The transaction would value CCR Re at close to €1 billion before the capital increase.
To support CCR Re’s growth, the operation would be followed by an increase in its capital of up to €200m, fully financed by the consortium, which would thereby obtain a total stake of approximately 75%. Mutual insurance group, SMABTP, as the majority shareholder, would take control of CCR Re.
CCR Re a rival to SCOR
“At CCR, we are proud to have incubated a leading reinsurance platform in Paris, a success that is now recognised by the interest of SMABTP and MACSF,” said Jacques Le Pape, Chairman of CCR.
“CCR Re, whose value is already close to one billion euros, will assert itself in coming years as the second largest international reinsurance center in Paris.
”We thank Bruno Le Maire, the Minister of Economy, Finance and Industrial and Digital Sovereignty for his support. The proceeds from the disposal will strengthen the resources available to CCR to manage the natural catastrophe scheme for the benefit of French policyholders in the context of climate change.”
For Pierre Esparbes, CEO of SMABTP, “This acquisition, together with MACSF, will represent for SMABTP a unique opportunity to diversify in the reinsurance arena, and will enable CCR RE to continue its development at a time when reinsurance is at the heart of societal challenges.”
“For the MACSF group, the investment in CCR Re is a great opportunity to support a profitable reinsurance company with strong growth potential,” added Stéphane Dessirier, CEO of MACSF Group.
”The management and teams at CCR Re have our full confidence to continue to pursue their development plans. We are delighted to team up in this ambitious project with SMABTP, a mutualist partner with whom we share the same model, values and vision of the market.
Credit Suisse, Messier et Associés and Freshfields Bruckhaus Deringer acted as financial advisor and legal counsel to CCR and the State, respectively, in this transaction. Lazard Frères and Fidal acted respectively as financial advisors and legal counsel to SMABTP and to MACSF.